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2020 ClearSource Financial - Master Fee Schedule Update   1   CITY OF LA QUINTA SHORT-FORM SERVICES AGREEMENT ($25,000 OR LESS) 1. PARTIES AND DATE. This Agreement is made and entered into this 1st day of June, 2020, (“Effective Date”) by and between the City of La Quinta, a Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, CA (“City”) and ClearSource Financial Consulting, a California Limited Liability Corporation (“Vendor”), with its principal place of business at 7960 B Soquel Drive, Suite 363, Aptos, California 95003. City and Vendor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. 2. TERMS AND CONDITIONS. The Parties shall comply with the terms and conditions in the attached Exhibit “A.” 3. SCOPE AND SCHEDULE OF SERVICES. Vendor shall provide to City an update of the City’s Master Fee Schedule of Various User and Regulatory Fees, pursuant to the date(s) and schedule(s) described in accordance with the schedule set forth in Exhibit “B.” 4. TERM. The term of this Agreement shall be from June 1, 2020 to October 31, 2020, (“Initial Term”) unless earlier terminated as set forth in the attached Terms and Conditions. This Agreement may be extend for a period of one (1) year (“Extended Term”). 5. COMPENSATION. Vendor shall receive compensation for services rendered under this Agreement at the rates and schedule set forth in the attached Exhibit “C” but in no event shall Vendor’s compensation exceed Three Thousand Dollars ($3,000) for the Term of the Agreement without written amendment. 6. FORCE MAJEURE. The time period specified for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Vendor including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Vendor shall within ten (10) days of the commencement of such delay notify the City in writing of the causes of the delay. The City shall ascertain the facts and the extent of delay and extend the time for performing the Services for the period of the forced delay when and if in their judgment such delay is    2   justified, and the City’s determination shall be final and conclusive upon the parties to this Agreement. Extensions to time periods for performance of services, which are determined by the City to be justified pursuant to this Section, shall not entitle the Vendor to additional compensation unless City expressly agrees to an increase in writing. 7. INSURANCE. In accordance with Section 4 of Exhibit “A,” Vendor shall, at its expense, procure and maintain for the duration of the Agreement such insurance policies as checked below and provide proof of such insurance policies to the City. Vendor shall obtain policy endorsements on Commercial General Liability Insurance that name Additional Insureds as follows: The City of La Quinta, its officers, officials, employees and agents. Commercial General Liability Insurance: X $1,000,000 per occurrence/$2,000,000 aggregate OR X $2,000,000 per occurrence/$4,000,000 aggregate X Additional Insured Endorsement naming City of La Quinta (above) X Primary and Non-Contributory Endorsement Automobile Liability: X $1,000,000 combined single limit for bodily injury and property damage. Workers’ Compensation: X Statutory Limits / Employer’s Liability $1,000,000 per accident or disease X Workers’ Compensation Endorsement with Waiver of Subrogation Professional Liability (Errors and Omissions): X Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim   A-1 EXHIBIT “A” TERMS AND CONDITIONS 1. Compensation. Vendor shall be paid on a time and materials or lump sum basis, as may be set forth in Exhibit “C”, within 30 days of completion of the Work and approval by the City. 2. Compliance with Law. Vendor shall comply with all applicable laws and regulations of the federal, state and local government. Vendor shall assist the City, as requested, in obtaining and maintaining all permits required of Vendor by Federal, State and local regulatory agencies. Vendor is responsible for all costs of clean up and/or removal of hazardous and toxic substances spilled as a result of his or her Work. 3. Standard of Care. The Vendor shall perform the Work in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession practicing under similar conditions. 4. Insurance. The Vendor shall take out and maintain, during the performance of all work under this Agreement: A. Commercial General Liability Insurance in the amounts specified in Section 7 of the Agreement for bodily injury, personal injury and property damage, at least as broad as Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001), and if no amount is selected in Section 7 of the Agreement, the amounts shall be $1,000,000 per occurrence/$2,000,000 aggregate; B. Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, of at least $1,000,000 per accident for bodily injury and property damage, at least as broad as Insurance Services Office Form Number CA 0001 (ed. 6/92) covering automobile liability, Code 1 (any auto); C. Workers’ Compensation in compliance with applicable statutory requirements and Employer's Liability Coverage of at least $1,000,000 per accident or disease. Vendor shall also submit to City a waiver of subrogation endorsement in favor of city, and D. Professional Liability (Errors and Omissions) coverage, if checked in section 6 of the Agreement, with a limit not less than $1,000,000 per claim and which shall be endorsed to include contractual liability. Insurance carriers shall be authorized by the Department of Insurance, State of California, to do business in California and maintain an agent for process within the state. Such insurance carrier shall have not less than an "A"; "Class VII" according to the latest Best Key Rating unless otherwise approved by the City. 5. Indemnification. The Vendor shall indemnify and hold harmless the City, its Council, members of the Council, agents and employees of the City, against any and all claims, liabilities, expenses or damages, including responsible attorneys’ fees, for injury or death of any person, or damage to property, or interference with use of property, or any claim of the Vendor or subcontractor for wages or benefits which arise in connection with the performance of this Agreement, except to the extent caused or resulting from the active negligence or willful misconduct of the City, its Council, members of the Council, agents and employees of the City. The foregoing indemnity includes, but is not limited to, the cost of prosecuting or defending such action with legal counsel acceptable to the City and the City’s attorneys’ fees incurred in such an action. 6. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Riverside, State of California. 7. Termination. The City may terminate the services procured under this Agreement by giving 10 calendar days written notice to Vendor. In such event, the City shall be immediately given title and possession to any original field notes, drawings and specifications, written reports and other documents produced or developed for the services. The City shall pay Vendor the reasonable value of services completed prior to termination. The City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Vendor shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for A-2 termination of work. Vendor may terminate its obligation to provide services under this Agreement upon 30 calendar days' written notice to the City only in the event of City’s failure to perform in accordance with the terms of this Agreement through no fault of Vendor. 8. Agreement Terms. Nothing herein shall be construed to give any rights or benefits to anyone other than the City and the Vendor. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal. Notice may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the parties to the addresses set forth in the Agreement. Vendor shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Vendor is retained as an independent contractor and is not an employee of the City. No employee or agent of Vendor shall become an employee of the City. The individuals signing this Agreement represent that they have the authority to sign on behalf of the parties and bind the parties to this Agreement. This is an integrated Agreement representing the entire understanding of the parties as to those matters contained herein, and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. This Agreement may not be modified or altered except in writing signed by both parties hereto. 7960 B SOQUEL DRIVE, SUITE 363 | APTOS, CALIFORNIA 95003 831.288.0608 | WWW.CLEARSOURCEFINANCIAL.COM PROPOSAL PROFESSIONAL SERVICES May 22, 2020 CITY OF LA QUINTA Attention: Monika Radeva, Deputy City Clerk Via email: mradeva@la-quinta.org PROPOSAL: MASTER FEE SCHEDULE UPDATE Dear Monika: Thank you for the opportunity to once again serve the City of La Quinta by providing user/regulatory fee consulting services. ClearSource is well-qualified, available, and equipped to complete the scope of work envisioned by the City within its timeframe for Fiscal Year 2020/21 implementation. A | Introduction The scope of services described in Section B of this proposal details the steps ClearSource will take to provide the City with this important update in advance of its Fiscal Year 2020/21:  Master Fee Schedule Update | This effort will update the City’s Master Fee Schedule for implementation in Fiscal Year 2020/21, with specific analysis as follows: - Minor non-inflationary changes to existing user and regulatory fees - Cost of service justification and/or rate and fee design for subsets of City services requiring discrete analysis due to underlying changes in costs or procedures or where new fees or structural change to a fee is warranted - Administrative record to support approval of a comprehensive Master Fee Schedule, including its revisions. ClearSource understands the City’s service level expectations, and we commit to serving the City in a way that respects community values and the requirements of both City staff and City Council. Additionally, beyond the years of partnership with the City of La Quinta on this topic, our Principal Consultant, Terry Madsen, and his staff of deeply experienced professionals have extensive collective career experience providing cost of service and cost recovery services for a broad range of California municipalities and public agencies. EXHIBIT B - Scope and Schedule of Services EXHIBIT C - Compensation for Services CLEARSOURCE Proposal to the CITY OF LA QUINTA | 2 B. | Scope of Services – Master Fee Schedule Update SUMMARY OF DELIVERABLES The City of La Quinta expects ClearSource to:  Prepare a cost of service analysis to inform proposed changes to fees, as warranted and discrete changes to the schedule including the addition of fees for services provided by the City and rates for rental of City facilities (e.g. use of public property and event use/parking permits).  Update the City’s master schedule of fees  Update the City’s resolution to impose revised fees  Prepare a staff report accompanying revised fee proposals  Prepare a summary presentation for City Council and public hearing  Lead or participate in one presentation to the City Council in a virtual setting, due to the stay at home orders in place during the COVID-19 pandemic. To complete the update of the City’s Master Fee Schedule for implementation at or near the start of Fiscal Year 2020/21, ClearSource will perform the following tasks. TASK 1 | STUDY ORIENTATION ClearSource will initiate the fee update as follows.  Conduct virtual project kick-off events.  Generate common understanding of project objectives, requirements, and procedures.  Identify fees in force to be analyzed and returned to the Master Fee Schedule.  Identify fees or rates within the Master Fee Schedule which need more immediate minor revision to align with current costs and processes. TASK 2 | CRITICAL INPUTS ClearSource will generate necessary information for sustaining the cost of service basis for the City’s user and regulatory fees.  Reference the City’s most recent cost of service study for relevant fee categories to develop financial and labor bases, sustaining the approach and rationale used for fees within the same category which will remain unchanged in this amendment  Develop service time questionnaires linked to any needed remodeled fee structures to estimate average or a range of service times for fee-related services. CLEARSOURCE Proposal to the CITY OF LA QUINTA | 3  Apply industry experience to populate under-developed time estimates or non-time driven facility use rates. TASK 3 | COST OF SERVICE ANALYSIS The purpose of this task is to develop the cost of service justification for changes to user and regulatory fees. As this effort is providing an update to the Master Fee Schedule between comprehensive fee studies, most fees will be evaluated for applicability of using the approved inflation-based adjustment method; however, ClearSource will check with departmental leaders to determine if there are specific areas where different adjustments may be warranted.  Generate quantitative analysis to define the cost of service based maximum user fee amounts able to be imposed at City Council discretion under California law.  Access fully burdened hourly rates in each participating City division, referencing the previous cost of service analysis for like fees and/or the prevailing Cost Allocation Plan.  Compute the cost of service at the activity level for fee-related services by applying hourly rates to service time estimates and project-specific direct expenses (following any remodeled fee structures proposed).  Identify current cost recovery achieved by prevailing user fees. TASK 4 | USER/REGULATORY FEE DESIGN & COST RECOVERY ClearSource will prepare the Master Fee Schedule for Fiscal Year 2020/21, as follows.  Develop the updated, proposed schedule of fees, proposed policies, and impacts.  As needed, prepare a comparison of fees to other municipalities in targeted service categories, likely by creating profiles for an array of “typical” uses.  Update of the published Master Fee Schedule.  As needed, prepare schedules comparing changes to fees in targeted service categories of interest to policymakers or for a selection of sample uses.  Estimate revenue impacts of fee proposals where feasible. TASK 5 | REPORTING AND TOOLS ClearSource will document the update of the Master Fee Schedule by providing the following services.  Presentation/summary materials for communicating proposals.  Assistance with staff report and public hearing noticing.  Staff report, including all background information, methodology, supporting justification, calculations, nexus findings, and administrative processes.  Delivery of technical models and work papers. CLEARSOURCE Proposal to the CITY OF LA QUINTA | 4 TASK 6 | ENGAGEMENT ClearSource will facilitate a meaningful level of interaction between consultants, City personnel, and City Councilmembers to successfully implement fee proposals.  Discussions to engage with departmental personnel to develop data and provide interim reviews points.  A public hearing to adopt the proposed fees contained in the final report. C | Schedule of Services It is understood that all findings requiring City Council approval will be prepared in June 2020 and ready for public noticing by July 2020. D | Consulting Fees FEE FOR CONSULTING SERVICES For the services described in this proposal, ClearSource presents the following not-to-exceed fees:  Total Project: $2,700 (assuming virtual City Council meeting participation) o If on-site participation is requested, add $300 to base fee Exhibit 2 illustrates the detail behind our presented maximum price for these services. EXHIBIT 2 | CONSULTING FEE DETAIL CLEARSOURCE Proposal to the CITY OF LA QUINTA | 5 PAYMENT TERMS ClearSource will issue monthly progress reports to the City. Accompanying invoices will be based on task progress within the project, with final invoice not submitted until work is completed as scoped in our work plan. Total invoices will not exceed the maximum price presented here. E | Statement of Qualifications COMPANY PROFILE ClearSource Financial Consulting is a privately owned California-based boutique consulting firm intentionally sized and structured to focus on a highly tailored, high quality study experience for our clients. ClearSource is staffed by a five-person team of seasoned individuals with decades of combined experience in local government financial analysis. We are particularly focused on equitable forms of cost allocation and cost recovery within the challenges and constraints of the ever-evolving California statutory and legal environment, informed respectfully and strategically by the voter driven principles embedded in Propositions 218 and 26. Our firm is centered on ClearSource founder and President, Terry Madsen, who will lead these services from start-to-finish. For over 18 years, Terry has provided financial consulting services exclusively to local government agencies. In October 2011, he founded ClearSource, a firm dedicated to providing local government agencies with premier financial consulting services, for which we exhibit:  Energy and enthusiasm to dive deep into the details  Willingness to do the heavy lifting necessary to implement modernization and lasting change  Commitment to on-time delivery and not-to-exceed consulting fees ClearSource Financial Consulting is a 100% privately owned registered California Corporation headquartered in Aptos, California. CONSULTING SERVICES ClearSource provides services to California municipal agencies, consulting on topics focused on revenue management through cost of service-based resources, including the following common areas of study and consulting for a wide cross-section of governmental services and funds:  User and regulatory fee studies  Master fee schedule updates  Comparative/market analysis  Cost allocation plans  Internal service fund rate studies  Cost sharing  Special financing district consulting CLEARSOURCE Proposal to the CITY OF LA QUINTA | 6 Our primary focus is in revenue streams linked to cost of service principles, equity, and local-government control. Throughout these areas of expertise, we often work in harmony with internal and external stakeholders to achieve successful implementation of the necessary solutions. PRINCIPAL CONSULTANT ASSIGNED TO THE CITY All consultant hours dedicated to the City for these services will all be performed by staff two or more decades into their careers serving public agencies on costs of service, cost recovery, and municipal budgeting. Our Principal Consultant and lead point of contact for this work is Terry Madsen. Terry has provided financial consulting services to local governments in California for over 18 years. In October 2011, he founded ClearSource Financial Consulting, a firm dedicated to providing local government agencies with premier, personalized financial consulting services on revenue streams recovering the costs of service. From October 2001 to October 2011, Terry was employed by a competing California firm, NBS. Terry’s depth of knowledge includes numerous service areas including user fee studies, indirect cost allocation studies, internal service fund rate studies, water and wastewater rate studies, and special financing district administration. Terry has worked closely with every level of the public body including property owners, community organizations, council members, special commissions, agency managers, all members of the agency finance team, directors of every agency department, management analysts, and the direct service staff that are the primary contact points for members of the community, such as inspectors, plan reviewers, operators, maintenance personnel, and records staff. In performing user/regulatory fee studies, he has analyzed a comprehensive array of municipal services, such as planning, land development, building, fire protection, code enforcement, community services, parks, recreation, administration, general governmental, public infrastructure, utilities, and others. The following is a sampling of California public agencies for whom Terry has supported on cost of service, cost allocation, and cost recovery projects:  City of Azusa  City of Bell (“The New Bell”)  City of Campbell  City of Escalon  City of Gustine  City of Huntington Beach  City of La Quinta  City of Laguna Woods  City of Lake Forest  City of Larkspur  City of Long Beach  City of Malibu  City of Milpitas  City of Monte Sereno  City of Ojai  City of La Quinta  City of Rancho Mirage  City of Roseville  City of San Leandro  City of La Quinta  City of Torrance  City of Ventura  City of West Sacramento  City of Wheatland  El Dorado County  Kern County  Sacramento Regional Transit District  San Diego Metropolitan Transit District CLEARSOURCE Proposal to the CITY OF LA QUINTA | 7 Terry’s credentials and affiliations include:  B.S. Cum Laude, Business Administration (Finance) with Economics Minor, Cal Poly San Luis Obispo  M.B.A., California State University San Bernardino  Member, California Society of Municipal Finance Officers G | Proposal Commitment I am the President of ClearSource Financial Consulting, authorized to negotiate and bind ClearSource contractually. My signature obligates ClearSource to the terms of this proposal and confirms that this proposal shall remain valid for a period of 90 calendar days from the date of this submittal. Sincerely, TERRY MADSEN, PRESIDENT | CLEARSOURCE FINANCIAL CONSULTING COMPANY NAME: ClearSource Financial Consulting CONTACT NAME: Terry Madsen, President and Principal Consultant PHONE NUMBER: 831.288.0608 MAILING ADDRESS: 7960 B Soquel Drive, Suite 363, Aptos, CA 95003 EMAIL ADDRESS: tmadsen@clearsourcefinancial.com WEB: www.clearsourcefinancial.com